Summer 1998

  Dear Friend of the Delaware River Waterfront 

     Entering its 52nd year of maritime service and my fourth year as president, the PMTA recognizes the
     essential need to communicate news and information of its activities to the industry community.  By keeping
     our industry abreast of PMTA/ILA events, we at PMTA can create a better and more aware productive
     working environment.  Our role in establishing working conditions that will attract new business has opened
     our eyes to the "public be informed" philosophy we sup-port. 

     PMTA stresses the importance of keeping our members and rank and file updated to ensure that our
     customers know they are receiving the highest quality service at the lowest possible cost.  The concerted
     efforts of the PMTA and the ILA contend with the steadily increasing demands and needs of our shippers. 
     By improving the quality of life and work rules for the ILA and customers using the Ports of the Delaware
     River, we all have dramatically increased the amount of cargo handled in our region. 
     This premiere issue of our newsletter, News From the Front, is addressed to everyone that is important to
     the success of our region.  This publication provides a forum for the discussion of maritime topics and news
     of our three waterfronts over the past several months. 

     We hope you find this publication readable and informative, and want you to get to know PMTA better and
     to feel closer to what we are doing.  Our newfound approach to communication is the least we can offer our
     readers, friends and supporters. 

     To the extent that our newsletter will share knowledge, it will be a welcome sight.  We also can establish
     greater impact among our members without having to expand the bud-get markedly. We welcome your
     comments, questions and suggestions about News from the Front, or other company matters.  Please feel
     free to contact us with your ideas. 

     Sincerely, 
     Uwe Schulz 
     PMTA President 

Ports of the Delaware River Marine Trade Association
An Occasional Newsletter Concerning Activities on the South Jersey, Philadelphia and Wilmington Delaware Waterfronts	Volume 1, Number 1 Summer 1998

     Ports of the Delaware River man-hours are up by 17% over last year or the second consecutive year. The Ports of the
     Delaware River are reporting a significant growth in man hours worked, a measurement of increased international cargo
     flows through the area, and in projected cargo statistics. PMTA released figures through June 7, 1998 covering the second
     year of the five- year, cost-effective ILA labor contract.  "For the contract year, beginning October 1, 1997 to date we have
     a 17% increase in hours worked over the last contract year at this same time.  If we maintain this pace, we will almost
     double the 10% increase for 'the full contract year that ended September- 30, 1997," said Uwe Schulz, PMTA President. 

     The past two years of growth dramatically reversed a previous 10-year downward trend.  This was achieved not only by
     working closely with the ILA, but by establishing partnerships with the South Jersey Port Corporation, Diamond State Port
     Corporation (Port of Wilmington, Delaware), the Philadelphia Regional Port Authority and other maritime organizations. 
     Three new carriers have begun calling at regional ports and PMTA anticipates that more new business will be attracted to
     the area.  "These new ships will inevitably result in an even greater growth in incremental business," added Mr. Schulz. 
     "Our, potential for regional growth in world markets is enormous."

     "We are and continue to be committed to serving our port area with new services and state-of-the-art technologies.  Such
     increased business will undoubtedly benefit our longshoremen, economy, businesses and communities." 
     Benefits Improved for the ILA membership $2.50 per- hour-, rewarding employees for more hours worked. Last year's
     Container Fund pay-out grew from $2,200 to $2,400, even with the $250,000 reserve held due to a container royalty cap in
     the master contract.  Furthermore, PMTA-ILA projects that the rising container volume, due in part to the newest carrier to
     join the port community, Navieias (NPR), will positively affect future container royalty benefits. 

     All the benefit upgrades were made possible due to the diligence of the trustees with assistance and support from new
     investment managers and service providers, professional advisers, consultants and legal staff members. 
     Successful cooperation among the trustees of PMTA and ILA has enabled the two organizations to provide enhanced
     benefits to port workers.  Working together to reduce the overall cost of their employee benefit packages, PMTA-ILA
     inevitably make the Ports of the Delaware River a more competitive shipping region. 

     "We are in the process of opening our ranks to new employees," according to Uwe Schulz.  "For the first time in decades,
     our employees are more comfortable about their job security." He added, "The ILA benefit improvements can be attributed
     to the conscientious use of funds by PMTA-ILA trustees." Developments in the Welfare Fund include an increase in
     death benefits from $3,000 to $5,000, more extensive dental and vision coverage, twice the amount of life insurance (from
     $10,000 to $20,000), and an additional $75 in sick and accident benefits amounting to $200 per week. 

     The defined employee pensions increased by $100 a month for all actives employed after October 1, 1996.  Commencing
     January 1998 the defined contribution rate was increased from $1.50 to $2.10 per hour.  In addition, PMTA-ILA created a
     13th payment of $500 to each pensioner for 1997. On the vacation fund, those employees who work 600 hours or more, will
     receive a vacation benefit payment of $3 per hour for the first 700 hours worked.  When these workers exceed 700 hours
     worked, they will receive 

   PMTA/ILA seek new cargoes 
     The Ports of the Delaware River Marine Trade Association and the ILA have joined in yet another venture to build markets
     for cargo being handled in the tri-port region.  In a move to assure harmony and productivity, both organizations are
     working together to negotiate competitive contracts for the handling of Delmarva poultry, as well as bulk and steel
     commodities. 

     Paul F. Richardson Associates, Inc. has been commissioned to develop various manning alternatives which could allow
     the ILA to tie its wage rates to productivity in the ports.  Wages to longshoremen would increase with volumes, a win/win
     situation for dockworkers and port customers alike. 
     The process was begun first for poultry producers, whose business to the ports has grown appreciably in the past two
     years.  In early 1995, 6,000 tons of chicken and turkey products moved through the Port of Wilmington, Delaware.  Since
     then, volume has increased over 30,000 tons, all consigned to Russia.  Working with Murphy Marine Services, together
     with the Diamond State Port Corporation, the PMTA and the ILA have agreed to a base-wage system, enhanced by
     increases as productivity grows.  As a result, at peak performance, these workers have the potential of becoming the
     highest paid in the port. 

     Wilmington has become aggressive in its attempt to garner poultry producers who often use Southern and Gulf ports,
     notably Morehead City, N.C. as exit points for their products.  Diamond State's terminal is well- suited for this business. 
     With 600,000 square feet of refrigerated warehouse space, shippers can move frozen poultry into the region weeks before
     arrival.  This contrasts sharply with competing service offered in Morehead City, where the same products must be
     transported immediately from the producers' own refrigerated trucks directly onto waiting vessels. 

     Port organizations have also targeted steel producers for greater volumes.  Steel is a vitally important commodity in the
     Delaware River area because it is number one in terms of vessels serviced, total tonnage handled, and potential man-hours
     needed to work these vessels.  It is also of prime concern because, currently, it is steel movements that account for the
     most hours being worked by non-ILA labor. 

     In an attempt to attract more business into the port system, terminal operators and the South Jersey Port Corporation have
     reduced their costs to steel producers.  With these reductions, the PMTA hopes for a concurrent agreement from the ILA,
     who have indicated an understanding that steel represents significant revenue to the port community and should be
     pursued vigorously.  The PMTA is also studying to see if it can further reduce its service fee for, this important
     commodity. 

     Jurisdictional issues between ILA workers and their non-ILA counterparts arise with respect to bulk transport, too. 
     Primarily moving out of Wilmington, bulk is a very big target for the port.  There is a lot of competitive pressure from
     non-ILA workers to become more involved in this commodity.  Additionally,  port interests have begun to work toward
     consensus to achieve the common goal of ensuring that union labor gets the lion's share of bulk tonnage in whichever
     PMTA port they can be found. The PMTA continues to explore alternatives available to the ILA workforce that will allow
     the PMTA employers to compete with the economics offered by the non-ILA employers in the marketplace.  This is being
     done so critical commodities, such as the bulk and steel cargoes, will be able to be maintained or recaptured under ILA
     jurisdiction.  Through the signing of the five-year contract, PMTA employers have demonstrated their commitment to the
     ILA and the importance of preserving the ILA presence on the Delaware River waterfront.

     With this mutual goal in mind, the leader-ship of the PMTA will continue to offer competitive wage and fringe benefit
     packages to the ILA on cargoes, such as steel and bulk that are targeted by our non-ILA competition.  It is the
     responsibility of the PMTA to alert our partners in the ILA of the ever- changing global economic conditions directly
     impacting the handling costs of these strategic commodities.  In many instances, these same commodities represent the
     most significant portion of the recent growth in our- man-hours, therefore, they have to be protected. 

     If the PMTA allows itself to get in a position where it no longer can compete, it would be the death knell for both the
     employers as well as the work force.  "It is of utmost importance that we pass along any data or knowledge that we have on
     these matters to the ILA membership, so that educated decisions concerning PMTA proposals can be made, " said Uwe
     Schulz, PMTA president.  "The PMTA commitment to ILA jurisdiction remains, and we will stand by our contract. 
     However, we do not want to end up in a position where we have a 'good' contract, but with no work." 

      Automated Hiring System benefits employers and longshoremen 
     As part of an ongoing effort to build efficiency into hiring practices and assure that work on the waterfront is assigned to
     card -carrying ILA members in good standing, the Ports of the Delaware River Marine Trade Association have embarked
     upon the development of an Automated Hiring System.  The program, when running at optimum levels, is expected to
     eliminate the antiquated methods of hiring common to most ports, procedures that have not kept pace with the technology
     already in place for many other functions in marine terminals. Finally, we will do away with the archaic shaping up at the
     hiring center where people can possibly wait all day until they get a job. 

     There is a tremendous amount of record -keeping required for the payroll process of an ILA member.  Compensation paid at
     different rates based upon the date an employee entered the industry and commodity profiles, payments to a myriad of
     funds, and calculations of hours worked, when and where -these are among the many items of information necessary to
     compute before a payroll check can be cut. 
     Accuracy is important.  To be able to retain basic unit eligibility, an ILA member must work at least 350 hours a years, and
     to gain full benefits, a minimum of 1,000 hours annually is required, commencing October 1, 1999.  It is anticipated that the
     automated system will capture the full range of statistics needed to ensure that longshoremen are credited accurately for
     their efforts and abilities. Those statistics will be invaluable in build-ing a data bank of important information for PMTA. 
     Workers having special skills, those who are interchangeable within a gang, or possess varying degrees of experience on
     specific jobs, could be readily identified.  As a result, employers will be able to direct their -resources to the proper places
     for maximum productivity.  And new Master, Contract restrictions limiting a person's work to 16 hours within a 24-hour
     range could be monitored more efficiently. 

     Automated hiring practices ensure more orderly future planning, as well.  As workers having special skills are identified,
     along with seniority, the need for replacements over -time can be tracked.  Ultimately, training programs can be designed to
     produce the skilled manpower necessary to fill slots emptied through attrition precisely when it is needed. It is anticipated
     that much of the information profiling ILA members will be contained in an updated version of the recently issued
     identification cards they now hold.  Conceivably, the new card, an electromagnetic item, would be "swiped" into an
     identifying computer when a longshoreman came to work.  Immediately, any relevant issues would be flagged.  Is this
     person an ILA member in good standing?  Is he experienced in the work he is checking in to perform?  If he is assigned to a
     car ship, does he have a valid driver's license? 

     While the concept of automated hiring is still in its initial stages, it will ultimately benefit every ILA member working the
     docks along the Delaware River.  The objective is to streamline and better control all the variables and options which have
     become unwieldy over the years.  There will be a commonality in port operations, whether in Camden, Philadelphia of
     Wilmington.  And there will be a better-trained, qualified union workforce achieving even greater productivity - and
     drawing more customers - in the region. 

     At a recent PMTA/ILA Contract Board, the parties unanimously agreed to start the implementation phase as in the
     contract proposal submitted by Computer Instruments, Inc., and the PMTA's legal staff is reviewing the present contract
     proposals.  Implementation would take approximately one year.  This will make the region one of the leaders in the nation,
     implementing the latest technologies in hiring practices.  PMTA President Uwe Schulz recently met with the Delaware River
     Port Authority to present the many advantages this would provide to its work-force and the users of its ports.  Hopefully
     this will assist in the financial undertakings of this exciting new program. 

     DRS begins expanded operations at Tioga Marine Terminal 
  Delaware River Stevedores, Inc., expanded its presence in area ports this spring when the company began operating the
     Tioga Marine Terminal in Philadelphia.  DRS was awarded a five-year contract by the Philadelphia Regional Port Authority
     to operate the terminal, which handles containerized and breakbulk cargoes, including steel and Chilean fruit.  Previously,
     the terminal was leased by Crowley American Transport, CSAV Chilean Line and Maritime Terminal of PA. 

     In addition to providing cost-effective operations, Robert Palaima, President of DRS, sees the acquisition as an
     opportunity to diversify the shipments that come through the terminal.  "We're trying to find a more diverse mix of
     shipping lines, overseas trading partners and cargoes so we're not dependent on one specific trade route or type of cargo,"
     he said.  Shipping companies that currently call at Tioga are Crowley, CSAV, Saga, Maersk, and Mitsubishi (steel). 
     Among the changes users will see is the introduction of a new computer system for tracking cargoes through the terminal. 
     This will allow port customers to have electronic data interchange and will reduce paperwork.  DRS hopes to have the new
     system up and running by November. 

     Delaware River Stevedores provides stevedoring and terminal operating services in Philadelphia and Camden.  DRS is 10
     years old, but its roots go back to the turn of the century.  Today, International Terminal Operating Co., Inc. (ITO) and
     Stevedoring Services of America (SSA) are 50% owners of Delaware River Stevedores.  Operations include discharging
     automobiles for Pasha Auto Warehousing at Pier 96, handling passenger liners at Philadelphia Naval Base and stevedoring
     Del Monte Fresh Produce in Camden. 

     DRS also handles steel, plywood, and cocoa beans at Beckett Street Terminal and Broadway Terminal in Camden.  The
     company employs approximately 300 ILA members.  The Tioga Terminal is its largest facility in Philadelphia. 
 
 

     News from the Front  is a publication of: 
     Ports of the Delaware River Marine Trade Association 
     Port Administration Building, Suite 301 3460 N. Delaware Ave., Phila., Pa. 19134 
     Uwe Schulz, President  Patrick T. Dolan, Vice President  William Kidston, Safety Director 
     Telephone: (215) 426-2510         Fax: (215) 426-4553 Website: www.pmta.com